Johnson and Johnson 2014 Annual Report Download - page 51

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Retirement Plans
Other Benefit
Plans
(Dollars in Millions) 2014 2013 2014 2013
Changes in Plan Assets and Benefit Obligations Recognized in Other
Comprehensive Income
Net periodic benefit cost $743 1,055 503 452
Net actuarial (gain) loss 4,942 (3,559) 1,015 248
Amortization of net actuarial loss (460) (681) (136) (111)
Prior service cost (credit) (60) 34 (253) 8
Amortization of prior service (cost) credit (6) (13) 34 –
Effect of exchange rates (273) (6) – (6)
Total recognized in other comprehensive income, before tax $4,143 (4,225) 660 139
Total recognized in net periodic benefit cost and other comprehensive income $4,886 (3,170) 1,163 591
The Company plans to continue to fund its U.S. Qualified Plans to comply with the Pension Protection Act of 2006.
International Plans are funded in accordance with local regulations. Additional discretionary contributions are made when
deemed appropriate to meet the long-term obligations of the plans. For certain plans, funding is not a common practice, as
funding provides no economic benefit. Consequently, the Company has several pension plans that are not funded.
In 2014, the Company contributed $561 million and $615 million to its U.S. and international pension plans, respectively.
The following table displays the funded status of the Company’s U.S. Qualified & Non-Qualified pension plans and
international funded and unfunded pension plans at December 28, 2014 and December 29, 2013, respectively:
U.S. Plans International Plans
Qualified Plans Non-Qualified Plans Funded Plans Unfunded Plans
(Dollars in Millions) 2014 2013 2014 2013 2014 2013 2014 2013
Plan Assets $15,201 13,990 – – 7,374 6,911 – –
Projected Benefit Obligation 15,571 11,921 1,683 1,296 9,203 7,797 432 474
Accumulated Benefit Obligation 13,875 10,745 1,363 1,065 8,205 6,974 373 419
Over (Under) Funded Status
Projected Benefit Obligation $(370) 2,069 (1,683) (1,296) (1,829) (886) (432) (474)
Accumulated Benefit Obligation 1,326 3,245 (1,363) (1,065) (831) (63) (373) (419)
Plans with accumulated benefit obligations in excess of plan assets have an accumulated benefit obligation, projected
benefit obligation and plan assets of $8.2 billion, $9.4 billion and $5.3 billion, respectively, at the end of 2014, and $5.4
billion, $5.8 billion and $3.3 billion, respectively, at the end of 2013.
The following table displays the projected future benefit payments from the Company’s retirement and other benefit plans:
(Dollars in Millions) 2015 2016 2017 2018 2019 2020-2024
Projected future benefit payments
Retirement plans $793 813 868 907 963 5,858
Other benefit plans $316 309 306 303 300 1,475
The following table displays the projected future minimum contributions to the unfunded retirement plans. These amounts
do not include any discretionary contributions that the Company may elect to make in the future.
(Dollars in Millions) 2015 2016 2017 2018 2019 2020-2024
Projected future contributions $74 75 78 84 89 531
Each pension plan is overseen by a local committee or board that is responsible for the overall administration and
investment of the pension plans. In determining investment policies, strategies and goals, each committee or board
considers factors including, local pension rules and regulations; local tax regulations; availability of investment vehicles
(separate accounts, commingled accounts, insurance funds, etc.); funded status of the plans; ratio of actives to retirees;
Johnson & Johnson 2014 Annual Report •41